BitMine Buys More ETH Worth $273M, Now Owns Over 3% of Total Supply

Ethereum-focused company BitMine has continued its aggressive accumulation, recently completing another purchase worth about $273 million. 

BitMine is clearly taking advantage of market changes, even as prices drop and other firms stay cautious. Many digital asset treasuries firms have paused buying or sold off their holdings during the recent market slump. 

BitMine’s Hodl a Significant Share of Ethereum Supply

BitMine’s latest Ethereum buy represents a 39% increase from its previous weekly purchase pace. The company’s total Ethereum holdings stands at 3.73 million ETH, valued at about $10.5 billion at current market level. 

The massive crypto stash makes the U.S.- based firm the largest Ethereum treasury in the world, accounting for more than 3% of the total supply. 

BitMine is facing more than $4 billion in paper losses on its Ethereum holdings. Still, the company keeps buying, focusing on long-term goals rather than short-term market changes.

Chairman Tom Lee said the company’s strategy reflects confidence in Ethereum’s long-term prospects, aiming to reach its internal goal of owning 5% of the network. 

BitMine Increases Ethereum Purchases Ahead of Network Upgrade

The wider crypto sector has been reducing risk as falling prices put pressure on company finances. Many firms have stopped buying crypto, and some have sold holdings to adjust stock values.

Even so, BitMine continues buying, seeing the market swings as a golden opportunity to grow its Ethereum position. Lee pointed to several reasons for the more purchases. 

He said Ethereum’s Fusaka upcoming upgrade is expected to improve the network’s security and scalability. In return, booting ETH’s market value. The crypto market has also steadied more than seven weeks after the October 10 crash, giving BitMine confidence to keep buying. 

The industry leader also pointed out that Federal Reserve policies could also play a role. He noted that the agency may stop balance sheet cuts and lower rates on December 10. These moves could support corporate investment and the crypto market at large. 

BitMine Shares Fall as Crypto Market Slumps

Amid the current bearish sentiment surrounding the crypto market, BitMine’s BMNR shares fell 7.7% in pre-market trading as broader market sentiment remained cautious. Also, Ethereum price is trading around $2,769, down by 10.39% in the last 24 hours, according to CoinMarketCap data.

Even with these short-term changes, BitMine is sticking to its plan of buying more Ethereum. The company is aiming to be a key player in the Ethereum network. At the same time, Lee remains optimistic about the future price outlook of Ethereum.